ABA Statement: OCC Takes Important First Step to Modernize CRA

By Rob Nichols, ABA president and CEO

Page Content

​“We appreciate Comptroller Otting’s willingness to lead the effort to modernize the rules implementing the Community Reinvestment Act. While we are still reviewing today’s Advanced Notice of Proposed Rulemaking, it’s clear that the OCC is taking an important step forward that will allow regulators to start collecting input from the public on how best to update and improve the regulatory framework.

“For years, outdated rules, a lack of transparency and inconsistent examinations have limited the effectiveness of the CRA. The current framework is holding back investment in communities the law is intended to serve, while failing to account for significant innovations in the banking sector, including the opportunities presented by mobile technologies. We have heard from bankers across the country who have told us that the current CRA rules make it harder for them to serve their communities, which makes today’s OCC action both timely and necessary.

“We are pleased to hear that the information OCC gathers will be shared with other regulatory agencies, helping pave the way for a future joint rulemaking. We look forward to participating in the process, and encourage all of our members to share their views and real-world experiences with CRA to help inform regulators in their efforts.”

# # #

The American Bankers Association is the voice of the nation’s $17 trillion banking industry, which is composed of small, regional and large banks that together employ more than 2 million people, safeguard $13 trillion in deposits and extend nearly $10 trillion in loans.